I 

112TH CONGRESS 

1ST SESSION H. R. 1376 

To require State governments to submit fiscal accounting reports as a 

condition to the receipt of Federal financial assistance, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 5, 2011 

Mr. POSEY introduced the following bill; which was referred to the Committee 

on Oversight and Government Reform 

A BILL 

To require State governments to submit fiscal accounting 

reports as a condition to the receipt of Federal financial 

assistance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Activity 

5 Based Total Accountability Act of 2011’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—The Congress finds as follows: 

8 (1) The Federal Government sends hundreds of 

9 billions of dollars to the States each and every year. 


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1 (2) In fiscal year 2009, among the money sent 

2 to the States were $325 billion for health and 

3 human services, $57 billion for transportation, $47 

4 billion for housing and urban development, $45 bil5 lion for education, and $31 billion for agriculture. 

6 (3) States receive money from the Federal Gov7 ernment through grants, loans, loan guarantees, 

8 property, cooperative agreements, interest subsidies, 

9 insurance, food commodities, and direct appropria10 tions, among others means. 

11 (4) Every State spends money for common ac12 tivities such as health care, transportation, housing, 

13 education, agriculture and other issues, yet some 

14 States are more effective than others when spending 

15 these Federal taxpayer dollars. 

16 (5) Taxpayers, legislators, and agencies should 

17 be able to objectively and reliably share data com18 paring apples-to-apples performance measurements 

19 that identify what government does and what it real20 ly costs. 

21 (6) Activity-based total accountability will show 

22 which States are the most effective with taxpayer 

23 dollars and lead to competition among States. 

24 (7) States demonstrating that they are more ef25 ficient with tax dollars by having lower activity costs 


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1 will serve as models for others to ensure that there 

2 is more accountability for how tax dollars are spent 

3 and to ensure that the taxpayer is getting the best 

4 value for their dollar. 

5 (b) PURPOSE.—The purpose of this Act is to improve 

6 the policymaking process and government accountability 

7 at the State level by requiring annual accountings from 

8 State governments in a format that uses total account9 ability measures, including unit-cost data. 

10 SEC. 3. STATE FISCAL ACCOUNTING REPORTS. 

11 (a) IN GENERAL.—Not later than 15 days before the 

12 end of a Federal fiscal year, each State government that 

13 receives Federal financial assistance in that Federal fiscal 

14 year shall submit a State fiscal accounting report for the 

15 Federal fiscal year to the Director of the Office of Man16 agement and Budget (hereinafter in this Act referred to 

17 as the ‘‘Director’’). 

18 (b) CONTENTS OF REPORT.—Each State fiscal ac19 counting report shall include— 

20 (1) a one-page summary that lists the total 

21 funding and expenditures of each budget entity of 

22 the State government; and 

23 (2) for each budget entity of the State govern24 ment, a unit-cost summary for the Federal fiscal 

25 year. 


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1 (c) PUBLICATION OF REPORTS.—The Director shall 

2 publish each report received under this section on an 

3 Internet Web site of the Director not later than 30 days 

4 after receiving that report. 

5 SEC. 4. STANDARDIZATION OF STATE FISCAL ACCOUNTING 

6 REPORTS. 

7 (a) STANDARDIZATION OF REPORTS.—The Director 

8 shall ensure that each State fiscal accounting report is in 

9 such standardized form as the Director may prescribe. 

10 Such form shall permit the comparison of the information 

11 contained in a State fiscal accounting report with the in12 formation contained in every other State fiscal accounting 

13 report. 

14 (b) INITIAL REPORTS.—Not later than 180 days 

15 after the date of enactment of this Act, each State govern16 ment that is required to submit a report under section 

17 3 shall submit to the Director a description of the pro18 grams and other activities carried out by each budget enti19 ty of that State government over that fiscal year, including 

20 such information on those programs or activities as the 

21 Director may require. 

22 (c) CLASSIFICATION SYSTEM.—Based on the descrip23 tions submitted under subsection (b) and on what the Di24 rector determines to be the most relevant data available 


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1 (including data from the most recent census), the Director 

2 shall by rule do the following: 

3 (1) Establish a uniform system for classifying 

4 such programs and activities within categories (here5 inafter in this Act referred to as ‘‘agency activities’’) 

6 identified by the Director. 

7 (2) For each agency activity, identify conduct 

8 (hereinafter in this Act referred to as an ‘‘activity 

9 unit’’) that, in the determination of the Director, 

10 constitutes a completed instance of such agency ac11 tivity. 

12 (3) For each agency activity, identify, to the ex13 tent practicable, performance measures for that 

14 agency activity, and, in publishing a report under 

15 section 3(c), link electronically such performance 

16 measures to that agency activity. 

17 SEC. 5. UNIT-COST SUMMARY. 

18 Each unit-cost summary for a budget entity of a 

19 State government shall be in such form as the Director 

20 may prescribe, be one page long, and include the following: 

21 (1) A statement of funds available, as described 

22 under section 6. 

23 (2) For each agency activity that the budget en24 tity began, attempted, continued, or completed, a 

25 line-item listing as described under section 7. 


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1 (3) A reconciliation of funds available with ad2 justed expenditures as described under section 8. 

3 SEC. 6. STATEMENT OF FUNDS AVAILABLE. 

4 (a) IN GENERAL.—A statement of funds available 

5 shall identify— 

6 (1) in accordance with subsection (b), each 

7 source of funds available for expenditure or obliga8 tion by the budget entity and the amount of such 

9 funds; and 

10 (2) the sum of all amounts identified under 

11 paragraph (1). 

12 (b) IDENTIFICATION OF SOURCES.—In identifying 

13 the sources of funds available for expenditure or obligation 

14 by the budget entity, the budget entity shall include the 

15 following: 

16 (1) All funds made available by State appro17 priations laws. 

18 (2) Any Federal financial assistance provided 

19 by a Federal department or agency. 

20 (3) Any other sources the Director determines 

21 appropriate. 

22 SEC. 7. AGENCY ACTIVITY LINE ITEM LISTINGS. 

23 (a) IN GENERAL.—A line item listing for an agency 

24 activity shall— 

25 (1) identify— 


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1 (A) the agency activity; 

2 (B) in accordance with subsection (b), the 

3 total amount of funds that the budget entity ex4 pended in carrying out the agency activity; 

5 (C) the number of activity units of the 

6 agency activity the budget entity began, at7 tempted, continued, or completed; and 

8 (D) the unit-cost of the agency activity, de9 termined in accordance with subsection (c); and 

10 (2) describe as many of the following as are rel11 evant to the agency activity: 

12 (A) What conduct constitutes an activity 

13 unit. 

14 (B) Each purpose for which the budget en15 tity engaged in that agency activity. 

16 (C) Each person that is an intended bene17 ficiary of that agency activity. 

18 (b) SPECIAL RULES FOR DETERMINATION OF EX19 PENDITURES.— 

20 (1) ALLOCATION OF EXPENDITURES FOR CER21 TAIN AGENCY ACTIVITIES.—If the Director deter22 mines that there is an agency activity for which no 

23 method of measuring the accomplishment of the 

24 agency activity exists, an expenditure for that agen25 cy activity must be consistently allocated to what is, 


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1 in the determination of the Director, a sufficiently 

2 similar agency activity for which such a method ex3 ists. 

4 (2) PAYMENTS TO CONTRACTORS OR SUBORDI5 NATE ENTITIES INCLUDED.—An identification of the 

6 total amount of funds that a budget entity expended 

7 shall include any amounts paid to a contractor or 

8 subordinate entity. 

9 (c) DETERMINATION OF UNIT-COST.— 

10 (1) IN GENERAL.—The unit-cost of an agency 

11 activity shall be determined in accordance with the 

12 following formula: 

μ UC = ———————————————————. 

φ 

13 (2) DEFINITION OF TERMS IN FORMULA.—For 

14 purposes of the formula in paragraph (1)— 

15 (A) UC is the unit-cost of the agency activ16 ity; 

17 (B) μ is the amount described in sub18 section (a)(1)(B); and 

19 (C) φ is the number described in sub20 section (a)(1)(C). 

21 SEC. 8. RECONCILIATION OF FUNDS AVAILABLE WITH AD22 JUSTED EXPENDITURES. 

23 (a) IN GENERAL.—A reconciliation of funds available 

24 with adjusted expenditures shall— 


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1 (1) identify the adjusted expenditures of the 

2 budget entity; and 

3 (2) explain any difference between the adjusted 

4 expenditures and the sum of all funds available for 

5 expenditure or obligation by the budget entity (de6 termined in accordance with section 6). 

7 (b) DETERMINATION OF ADJUSTED EXPENDI8 TURES.— 

9 (1) IN GENERAL.—The adjusted expenditures 

10 of the budget entity shall be determined in accord11 ance with the following formula: 

AE = EXP + PT + REV. 

12 (2) DEFINITION OF TERMS IN FORMULA.—For 

13 purposes of the formula in paragraph (1)— 

14 (A) AE is the adjusted expenditures; 

15 (B) EXP is the sum of all expenditures by 

16 the budget entity for agency activities; 

17 (C) PT is the sum of all pass-throughs 

18 identified by the budget entity under subsection 

19 (c); and 

20 (D) REV is the sum of all reversions iden21 tified by the budget entity under subsection (c). 

22 (c) IDENTIFICATION OF PASS-THROUGHS AND RE23 VERSIONS.—A budget entity may identify an amount as 


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1 a pass-through or a reversion if the amount satisfies cri2 teria established by the Director. 

3 SEC. 9. NONCOMPLIANCE. 

4 If the Director determines that a State government 

5 has failed, with respect to a Federal fiscal year, to file 

6 a sufficient and timely State fiscal accounting report 

7 under this Act, the Director shall so inform the head of 

8 each Federal department or agency. Each such head shall 

9 withhold 10 percent of any Federal financial assistance 

10 provided to the State government for the next Federal fis11 cal year. 

12 SEC. 10. RULES. 

13 The Director is authorized to make such rules as may 

14 be necessary to carry out this Act. 

15 SEC. 11. DEFINITIONS. 

16 In this Act: 

17 (1) The term ‘‘State government’’ means the 

18 government of each of the several States, the Dis19 trict of Columbia, and any commonwealth, territory, 

20 or possession of the United States. 

21 (2) The term ‘‘budget entity’’ means a State 

22 agency or the State judiciary. 

23 (3) The term ‘‘agency activity’’ means major 

24 operational activities carried out by a budget entity. 


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1 (4) The term ‘‘Federal financial assistance’’ has 

2 the meaning given such term in section 7501 of title 

3 31, United States Code, and also includes any other 

4 amounts that the Director determines appropriate. 

Æ 


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